Audit report, state of Georgia, Georgia State Games Commission, year ended June 30, 1997

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REVIEW REPORT STATE OF GEORGIA GEORGIA STATE GAMES COMMISSION YEAR ENDED JUNE 30, 1997
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

GEORGIA STATE GAMES COMMISSION - TABLE OF CONTENTS -

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUP

2

B STATEMENT OF CHANGES IN FUND BALANCES

(STATUTORY BASIS)

GOVERNMENTAL FUND TYPE

3

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

4

D STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

6

E NOTES TO THE FINANCIAL STATEMENTS

7

SUPPLEMENTARY INFORMATION

SCHEDULES

1 SCHEDULE OF APPROVED BUDGET

16

2 CASH AND CASH EQUIVALENTS

17

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 25, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members of the Georgia State Games Commission
and Honorable Nicholas J. Gailey, Executive Director
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through E) ofthe Georgia State Games Commission as of and for the year ended June 30, 1997, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of the Georgia State Games Commission.
A review consists principally of inquiries of agency personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1.
Our review was made for the purpose of expressing limited assurance that there were no material modifications that should be made to the financial statements in order for them to be in conformity with the basis of accounting described in Note 1. The accompanying supplementary information (Schedules 1 and 2)

97ARL-4

is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the fmancial statements and we. are not aware of any material modifications that should be made thereto.
Respectfully submitted,
~~
Claude 1. Vickers State Auditor
CLV:jy 97ARL-4

FINANCIAL STATEMENTS - 1-

GEORGIA STATE GAMES COMMISSION COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30,1997

EXHIBIT "A"

ASSETS Cash and Cash Equivalents
(See Schedule) Amount to be Provided for Payment of
Accrued Compensated Absences
Total Assets

GOVERNMENTAL FUND TYPE BUDGET

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Only) JUNE 30, 1997 JUNE 30, 1996

$

214,152.71

$

$

214,152.71 $

$

214,152.71 $

412,808.08

11,440.66

11,440.66

10,875.75

11,440.66 $

225,593.37 $

423,683.83

LIABILITIES AND FUND EQUITY

Liabilities

Accounts Payable

$

Compensated Absences

Total Liabilities

$

Fund Equity

Fund Balances

Reserved

Reebok Athletic Improvement Grant

$

Sponsorship and Participant Fees

Total Fund Equity

$

Total Liabilities and Fund Equity $

1,780.67 $
1l80.67 $
21,112.00 191,260.04 212,372.04
214,152.71 $

$
11,440.66
11,440.66 $

1,780.67 $
11,440.66
13,221.33 $

346.37 10,875.75
11,222.12

$

21,112.00 $

31,112.00

191,260.04

381,349.71

$

212,372.04 $

412,461.71

11,440.66 $

225,593.37 $

423,683.83

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
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GEORGIA STATE GAMES COMMISSION STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30, 1997

EXHIBIT "B"

FUND BALANCES - JULY 1 Reserved Unreserved Undesignated
ADDITIONS Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures Exhibit "C"
DEDUCTIONS Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCES - JUNE 30 (To Exhibit nAn)

BUDGET FUND YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$

412,461.71 $

0.00

$

412,461.71 $

51,784.83 0.00
51,784.83

$

0.00 $

775.00

212,372.04

411,686.71

$

212,372.04 $

412,461.71

$

412,461.71 $

51,784.83

$

212,372.04 $

412,461.71

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement. -3-

GEORGIA STATE GAMES COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 3D. 1997

EXHIBIT"C"

FUNDS AVAILABLE
REVENUES
OTHER REVENUES RETAINED Contract . Georgia Department of Natural Resources Reebok Athletic Improvement Grant Sale of Merchandise Sponsorships Sport Participant Entry Fees
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Reebok Athletic Improvement Grant Sponsorship and Participant Fees
Total Carry-Over from Prior Year

TOTALS
YEAR ENDED JUNE 30,1997 JUNE 30,1996

$ 202,448.00 $ 0.00
47,785.00 81,170.00 25,544.50
$ 356,947.50 $

279,545.00 210,262.00
85,192.61 130,366.31 251,230.92
956,596.84

$

31,112.00 $

381,349.71

$ 412,461.71 $

0.00 51,784.83
51,784.83

Total Funds Available

$ 769,409.21 $ 1,008,381.67

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
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GEORGIA STATE GAMES COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30,1997

EXHIBIT"C"

EXPENDITURES
PERSONAL SERVICES
Salaries and Wages Employer's Contributions for:
F.I.CA Retirement Health Insurance Personal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
REGULAR OPERATING EXPENSES
Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses
Event Cost Parking Duplicating and Rapid Copy Publications and Printing
TRAVEL
COMPUTER CHARGES
Computer Billings, DOAS
TELECOMMUNICATIONS
PER DIEM, FEES AND CONTRACTS
Per Diem and Fees Contracts
OTHER
REEBOK ATHLETIC IMPROVEMENT GRANT Grants to Counties, Cities and Civil Divisions
Total Expenditures
Excess of Funds Available over Expenditures

TOTALS
YEAR ENDED JUNE 30,1997 JUNE 30,1996

$

60,810.00 $

4,532.12 9,510.72 7,601.22 1,848.00
9.00 91.00

$ _ _8::4:,.4.:0.2..0t;6=~$

59,028.00
4,361.81 9,232.08 7,378.56
163.00 8,00
293,00
80,464.45

$

3,573.39 $

18,904.72

602.40

13,151.50

14,829.32

120,040.40 2,092.00 0.00
27,505.29

$---2=00= ,69=9.0=2 $ $--....2=,.83!3,.;8=5~$

4,345.12 28,908.10
463.56 9,222.23 23,085.00
55,942.80 4,988.20 1,063.84
23,117.13
151,135.98
1,110.21

$-_---60:0=.0~0 $ $ _ _---6=-,L9:1:..9.:..3==2_ $

0.00 9,115.08

$ 216,582.92 $ 35,000.00

150,719.24 25,000.00

$

251,582.92 $ _----:1...:...75:;.l,,;...71.:..::9-'=.2:...:,.4

$

10,000.00 $

$

557,037.17 $

212,372.04

179,150.00 596,694.96 411,686.71

$

769,409.21 $ 1,008,381.67

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
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GEORGIA STATE GAMES COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 3D. 1997

EXHIBIT"D"

FUNDS AVAILABLE REVENUES
Other Revenues Retained CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

571,523.00 $

356,947.50 $

-214,575.50

0.00

412,461.71

412,461.71

EXPENDITURES
Personal Services Regular Operating Expenses Travel Computer Charges Telecommunications Per Diem, Fees and Contracts Reebok Athletic Improvement Grant

$

571,523.00 $

769,409.21 $ - - - -1-97',8-86-.2-1

$

84,558.00 $

84,402.06 $

212,965.00

200,699.02

3,000.00

2,833.85

2,000.00

600.00

10,000.00

6,919.32

259,000.00

251,582.92

0.00

10,000.00

155.94 12,265.98
166.15 1,400.00 3,080.68 7,417.08 -10,000.00

$

571,523.00 $

557,037.17 $

1_4..;..,4~8..:..5..:..8.:..3

Excess of Funds Available over Expenditures

$

212,372.04 $===2=1=2=,3=7=2.=04=

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,1997

EXHIBIT"E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Georgia State Games Commission, an organizational unit ofthe State of Georgia, is part ofthe executive branch of the government of the State of Georgia. The Commission was created in 1989 by an Act of the General Assembly of Georgia for the purpose ofprotecting and improving the physical fitness ofthe residents ofthe State. The Commission consists offifteen (15) members; thirteen (13) appointed by the Governor, one (1) by the President of the Senate and one (1) by the Speaker of the House of Representatives. The Commission is assigned to the Department of Natural Resources for administrative purposes. The Georgia State Games Commission is included within the State of Georgia reporting entity for fmancial reporting purposes because of the significance of its legal, operational and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING The Georgia State Games Commission uses a fund and an account group to report on its financial position and the results of its operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The fund and account group presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND TYPE
BUDGET FUND - The fund used to account for activities and functions of the Georgia State Games Commission. The Budget Fund is similar in nature to a General Fund as defined in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments and compensated absences, which will be paid from future resources.

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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the flow ofcurrent financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure of available spendable resources.
GOVERNMENTAL FUND TYPE BUDGET FUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues that are accrued include primarily certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgements which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
Contractual obligations for goods and services which have not been received at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund balance.
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances of the Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures.
BUDGET A budget for the financial operations of the Georgia State Games Commission is approved by the Commission at a selected meeting. The budget is not subject to review or approval by the Legislature of the State of Georgia and therefore, is a nonappropriated budget. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and funds on deposit (demand deposits) with Georgia Department of Natural Resources.
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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES No inventories of supplies are reported in these fmancial statements. Expendable supplies are recorded as expenditures at the time of purchase.
RESERVED FUND BALANCE Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a brief description of the reserves reflected in the accompanying fmancial statements:
SPONSORsmp AND PARTICIPANT FEES The residual portion of monies collected from sponsors and participant fees not yet expended or encumbered. This amount is restricted for expenditure for the "Georgia State Games" in future years.
REEBOK ATHLETIC IMPROVEMENT GRANT The residual portion of a grant not yet expended or encumbered. This amount is restricted for grants to local recreation programs in the subsequent fiscal year.
COMPENSATED ABSENCES Compensated absences represent obligations of the Commission relating to employee's rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating annual leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount will not be liquidated with expendable available financial resources.
The liability for compensated absences at year end is reported in the General Long-Term Debt Account Group for governmental funds.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding of the changes in the Commission's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding of the Commission's financial position and operations or would cause the statements to be unduly complex and difficult to understand.

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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"E"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds ofthe State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
(3) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia the option of exempting demand deposits from the collateral requirements.
CATEGORIZATION OF DEPOSITS The Georgia State Games Commission is assigned to the Department of Natural Resources (DNR) for administrative purposes and as such, DNR maintains accounting records, including deposits, for the Commission. As a result, we are unable to provide a separate disclosure for custodial credit risk for the Commission.

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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"E"

NOTE 3: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1997, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

Balance July 1, 1996

$ 10,875.75

Additions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits

524.77 40.14

Balance June 30, 1997

$ 11.440.66

NOTE 4: RISK MANAGEMENT

Public Entity Risk Pool

The State Personnel Board, Merit System of Personnel Administration administers for the State of Georgia a program of health benefits for the employees ofunits of government ofthe State of Georgia, units of county government and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board, Merit System of Personnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.

Other Risk Management

The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia ofmaking and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Commission is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment.

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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"E"

NOTE 5: DEFERRED COMPENSATION PLAN
The State of Georgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, avdilable to employees ofthe State of Georgia and county health departments, permits such employees to defer a portion of their salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amoUIits of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights ofthe State of Georgia subject only to the claims ofthe State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan will be presented in the State of Georgia Comprehensive Annual Financial Report for the year ended June 30, 1997.
A change in the Internal Revenue Code Section 457, effective August 20, 1996, requires that by January 1, 1999 all existing eligible deferred compensation plans must be held in trust for the exclusive benefit of participants and their beneficiaries. The State of Georgia's plan will be converted effective July 1, 1998.
NOTE 6: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description The Georgia State Games Commission participates in the Employees' Retirement System of Georgia ("ERS"), a single-employer, defined benefit plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia.
The benefit structure of ERS is defined by State statute and was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.
Under both the old plan and new plan, members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless of age.

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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "E"

NOTE6: RETmEMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description Retirement benefits paid to members are based upon a formula which considers the monthly average ofthe member's highest eight consecutive calendar quarters of salary, the number of years ofcreditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death, Death and disability benefits are also available through ERS.
The ERS issues a financial report each fiscal year which may be obtained through ERS.
Funding Policy As established by State statute, all full-time employees ofthe State of Georgia and its political subdivisions, who are not members of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The Commission's payroll for the year ended June 30, 1997, for employees covered by ERS was $60,810.00. The Commission's total payroll for all employees was $60,810.00.
Under the old plan, member contributions consist of 4% of annual compensation up to $4,200.00 and 6% of annual compensation in excess of $4,200.00. Of these member contributions, the employee pays the first 1.25% and the employer pays the remainder on behalf of the employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Commission also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1997, the ERS employer contribution rate for the Commission amounted to 15.39% of covered payroll and included the amounts contributed on behalf of the employee under the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees.
Total contributions to the plan made during fiscal year 1997 amounted to $10,118.76, of which $9,358.63 was made by the Commission and $760.13 was made by employees. These contributions met the requirements of the plan.
Actuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 1997, financial report which may be obtained through ERS.

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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"E"

NOTE 6: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description The Georgia State Games Commission is eligible to participate in the Georgia Defmed Contribution Plan ("GDCP") which is a single-employer defined contribution plan established by the Georgia General Assembly for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and parttime and are not members ofa public retirement or pension system. GDCP is administered by the Employees' Retirement System Board of Trustees. The Commission did not have any employees eligible to participate in GDCP for the year ended June 30, 1997.
NOTE 7: LEAVE POLICIES
Employees earn ten hours of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.
Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employees' length of continuous State service with a maximum accumulation of forty five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences.
Certain employees who retire with one hundred and twenty days or more of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 8: CONTINGENCIES
Litigation, claims and assessments filed against the Georgia State Games Commission, if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1997.

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SUPPLEMENTARY INFORMATION - 15 -

GEORGIA STATE GAMES COMMISSION SCHEDULE OF APPROVED BUDGET
YEAR ENDED JUNE 30, 1997

SCHEDULE "1"

FUNDS AVAILABLE
REVENUES
Other Revenues Retained
EXPENDITURES
Personal Services Regular Operating Expenses Travel Computer Charges Telecommunications Per Diem, Fees and Contracts

ORIGINAL BUDGET

BUDGET ADJUSTMENTS

TOTAL

$

502,448.00 $

69,075.00 $ =====5=71=,5=2=3=.0=0

$

84,558.00

173,890.00 $

2,000.00

2,000.00

10,000.00

230,000.00

$ 39,075.00
1,000.00
29,000.00

84,558.00 212,965.00
3,000.00 2,000.00 10,000.00 259,000.00

$

502,448.00 $

69,075.00 $ =====5=7==:1,=52=3=.0==0

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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GEORGIA STATE GAMES COMMISSION CASH AND CASH EQUIVALENTS JUNE 30, 1997
NONINTEREST BEARING ACCOUNTS Funds on Deposit with the Department of Natural Resources
OTHER Petty Cash

SCHEDULE "2"
$ 213,452,71 700,00
$ =::::::::=2:::::14=,1=5=2=,7=1

See accompanying notes and Independent Accountant's Combined Report on Review of Financial . Statements and Supplementary Information,
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